Pakistan will import 300 thousand tons of raw sugar-government

ISLAMABAD, 18th August (Reuters) – Pakistan informed Tuesday that they will import 300 thousand tons of raw sugar, just days after starting bidding to import 75 thousand tons of white sugar to avoid a possible shortage.

The decision came during a government meeting presided over by Premier Yusuf Raza Gilani to discuss the availability of sugar during the sacred month of Ramadan, which starts this week. Consumption of sugar increases during this month as people traditionally break their period of fasting with sweets.

“During the meeting it was decided to import 300 thousand tons of raw sugar over the coming months” Gilani’s cabinet stated in a communiqué after the meeting.

Last week Pakistan started bidding to import 75 thousand tons of white sugar which will end on 29th August. The bids will be opened on that date.

The decision to purchase white and raw sugar was made after heavy increases in domestic prices of the commodity.

Pakistan has already purchased 125 thousand tons of white sugar this year after a decision made in February to import 200 thousand tons to attend demand and control prices, after production fell to an estimated 3.2 million tons for the 2008/09 crop, down from 4.7 million tons the year before.

Annual consumption of sugar in Pakistan varies from 3.6 to 4.2 million tons, but industry authorities stated that the volume has fallen since October on account of the high prices and economic slowdown which has resulted in a smaller demand from industries such as manufacturers of beverages.